Recommendation From Household Appliances &Pharmaceuticals Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations

CROMPTON GREAVES CONSUMER ELECTRICAL 

CMP - Rs.246.45
BSE CODE 539876
Volume 51,954
Face Value Rs.2
Target Rs.272
Stoploss Rs.225 (CLS ) 

Crompton Greaves Consumer Electricals manufactures and markets a wide spectrum of consumer products, ranging from fans, lamps and luminaires, to pumps and household appliances. Recently, the company incorporated a wholly-owned subsidiary company, namely, Crompton CSR Foundation. The incorporated company will support, promote and enhance education, employment, vocational skills, and sustainable livelihood, curative and preventive healthcare measures; sanitation and availability of safe drinking water measures; measures for eradicating hunger, poverty and malnutrition; sustainability environmental and ecological balance, etc. On the consolidated financial front, the company posted net sales of Rs.1,206.88 crore in Q4FY19 as against Rs.1,126.31 crore, up by 7.15 per cent. The PBIDT grew by 1.58 per cent to Rs.167.07 crore on a YoY basis. The PAT grew by 36 per cent to Rs.140.54 crore on a YoY basis. Based on these factors, we recommend a BUY 


CAPLIN POINT LABORATORIES 

CMP - Rs.446.80
BSE CODE 524742
Volume 24,234
Face Value Rs.2
Target Rs.495
Stoploss Rs.410(CLS) 

Pharmaceutical company Caplin Point Laboratories offers a range of products such as antibiotics, tablets, liquid orals, capsules, ovules, pain-management and anti-ulcers. The company's manufacturing facility is located in Himachal Pradesh, while its research facility is based in Tamil Nadu. Comparing the revenue of Rs.140.74 crore in March 2019 to Rs.110.44 crore in March 2018, there is an increase of 27.45 per cent in March 2019. For the fourth quarter of FY19, the PBDT stood at Rs.59.49 crore as against Rs.31.71 crore for the same quarter of the previous fiscal. In the fourth quarter of FY19, the company's profit increased by around 86.87 per cent to Rs.40.33 crore. On the annual financial front, the net sales increased by 25.87 per cent to Rs.536.91 crore for FY19 as compared to FY18. In FY19, the net profit was reported at Rs.148.17 crore, which is 44.82 per cent higher that the net profit of Rs.102.31 crore in FY18. Based on the strong financial numbers, we recommend a BUY.


Rate this article:
No rating
Comments are only visible to subscribers.

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR